HR questin should my girlfriend except 5 month severence or stay on piff?

Question

My girlfried is going thru ruff times. She has been with this giant IT company for last 10 years, lately things have been not well for her in her group and now today she has to make a decision. These are her only options. Either leave the company and accept 5 month severence or stay at the company but be on the piff. Some kind of under review type deal but still employeed. She is making pretty good money around 90K with awesome benefits but hates her job and the group she works at. She can't go to other groups those are the rules. However if she leaves she gets 5 month plus they r cashing her stocks and she'll get 50K from that as well. What should my girlfriend do? Please answer soon as she has till 4 PM today July 16 Pacific Time.

Answer 1

Don't let them cash out her 401k if that is what you really mean.  She will get penalty fines for that for withdrawing early.  She should do a roll-over to another IRA.  Or she has to roll-it over after so many days after she gets the check.

Also, I would take the severance.  She'll get, what, about $30K after taxes for doing absolutely nothing.  That's great money she can invest for retirement, and keep some for a few months to look for a new job.  I'm in the same situation.  I'm getting 6 month retention bonus to stay until the end, plus 6 months severance regardless.  Now, why would I leave early and skip out on the 6 months retention?  That's just good money slipping right through your fingers.